Search & Filtering
Consider the following facts about mobile money transactions. Currently, MTN and AirtelTigo charge 1% on mobile money transactions up to a total charge of GHS 10 per transaction while Vodafone charges 0%. The E-levy which is currently being discussed is intending to impose an additional 1.5% charge on most electronic transactions.
“The research we did also told us that there will be about 24 per cent attrition rate in the three months to six months that we will introduce it. The same research told us what should be done to bring back these people after a while, and we have all these things in place”
Suppose that the 3-6 months constitute short-run and any period after that constitutes long-run. Based on the minister’s statement, is the demand for mobile money services more or less elastic in the short-run compared to the long-run? Is this consistent with whatwelearnedaboutelasticity in thisclass? Explain
.
Draw a diagram showing the effects of an increase in the price of bus journeys on the equilibrium market price and output in the weekly market for e-scooters in the UK.
Now suppose the minister for employment proposes an increase in the minimum wage. What effect would this increase have on employment? Does the change in employment depend on the elasticity of demand, the elasticity of supply, both elasticities, or neither?
How does the search for market niches by British firm help illustrate the theory of comparative advantage?
How does EU manager’s desire to buy domestic products illustrate the importance of consumer taste in international markets?
Draw a diagram showing the effects of a decrease in the wage rate of bricklayers on the equilibrium market price and output in the annual market for new houses in France.
The country of Adam Island which is located 17 degrees due west of Peter Island, experienced rapid economic growth 2014 to 2020 due to the construction of some major major hotels. As a result there was a significant increase in employment in hotel and restaurant sectors, retail trade and the construction sector. However in 2021 due to the covid-19 pandemic the tourism sector fell flat as there was a surge in the virus from the source market from which the tourists came from. This caused major unemployment in Adam Island.
Given the contraction that that was experienced, real GDP for instance fell from $900.0M Adam Island Dollars in 2020 to $750M Adam Island dollars in 2021. Expressed in market prices (or nominal prices), GDP for 2020 was $1,150M while in 2021 it was $975M Adam Island Dollars.
What was the dollar value decrease in Real GDP from 2020 to 2021?
Fariha's parents increase her allowance, so she spends more money on coffee every week. How can you explain this with a graph?
Arya decides to set aside $300 from her paycheck every month. How will this affect her demand curve? (You may explain without using specific numbers).
Suppose that the quantity of coffee demanded declines from 206,000 gallons per week to 194,000 gallons per week as a consequence of a 10 percent increase in the price of coffee drinks. The price elasticity of demand is a. 1.66. b. 6.00. c. 0.60. d. 1.40. Show the calculation.
